In the game, three karateka fight against each other on a beach, trying to be the first to score six points. After every two rounds, there is a bonus game which involves bouncing balls. The game can be played by one or two human players, at least one fighter is always controlled by the computer.

Unlike its predecessor, International Karate, there is only one backdrop. However, different parts of the backdrop can be recolored to several different themes by the players using specific keystrokes.